Variations in working capital management in Croatia and Finland
(2023) BUSN79 20231Department of Business Administration
- Abstract
- This thesis investigates the variations in working capital management between Croatian and Finnish companies across different sizes. The study aims to gain a comprehensive understanding of the factors influencing these variations and the underlying reason behind them. The research adopts a mixed-methods approach, combining quantitative survey and qualitative semi structured interviews to collect data from both countries.
The quantitative survey, based on previous research done in the field, provides an overview of the market practices and preferences in Croatia and Finland. The survey assesses various dimensions of working capital management including the responsibility and policies, cash management, inventory management, accounts... (More) - This thesis investigates the variations in working capital management between Croatian and Finnish companies across different sizes. The study aims to gain a comprehensive understanding of the factors influencing these variations and the underlying reason behind them. The research adopts a mixed-methods approach, combining quantitative survey and qualitative semi structured interviews to collect data from both countries.
The quantitative survey, based on previous research done in the field, provides an overview of the market practices and preferences in Croatia and Finland. The survey assesses various dimensions of working capital management including the responsibility and policies, cash management, inventory management, accounts receivable management and accounts payable management, as well as other considerations regarding working capital management.
Through in-depth interviews with key financial decision makers, this study explores the diverse practices and strategies employed in working capital management across different sized companies. The qualitative analysis provides insights into specific decision-making processes, contextual factors and challenges influencing working capital management and its components.
The findings of this study reveal notable variations in working capital management practices in Croatia and Finland across different sized companies. Small companies, constrained by limited resources and financial constraints, often adopt flexible and informal policies with a high orientation on customer and supplier communication and relationships. Medium and large companies on the other hand tend to opt for more formalized and structured working capital management strategies while leveraging their larger resource base and better bargaining power. Findings also provide an insight into the cultural differences emphasizing high degree of collectivism and personal relationships in Croatia, while Finnish companies opted for more objective and individualistic approaches.
This research contributes to the existing knowledge on working capital management by providing a nuanced understanding of variations across size differences in Croatia and Finland. The findings have practical implications for managers, offering valuable insights into the factors influencing working capital management decisions. The study emphasizes the importance of tailoring working capital management strategies to the specific needs and challenges posed by different company sizes and different cultural contexts. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9128278
- author
- Kristijan, Luka LU and Björkqvist, Max-Erik Viking LU
- supervisor
-
- Elin Funck LU
- organization
- alternative title
- Variations in working capital management in organizations of different sizes and cultural contexts
- course
- BUSN79 20231
- year
- 2023
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Working capital management, Cash management, Inventory management, Accounts receivable management, Accounts payable management, Mixed-method research, Variations, Croatia, Finland
- language
- English
- id
- 9128278
- date added to LUP
- 2023-09-12 15:57:25
- date last changed
- 2023-09-12 15:57:25
@misc{9128278,
abstract = {{This thesis investigates the variations in working capital management between Croatian and Finnish companies across different sizes. The study aims to gain a comprehensive understanding of the factors influencing these variations and the underlying reason behind them. The research adopts a mixed-methods approach, combining quantitative survey and qualitative semi structured interviews to collect data from both countries.
The quantitative survey, based on previous research done in the field, provides an overview of the market practices and preferences in Croatia and Finland. The survey assesses various dimensions of working capital management including the responsibility and policies, cash management, inventory management, accounts receivable management and accounts payable management, as well as other considerations regarding working capital management.
Through in-depth interviews with key financial decision makers, this study explores the diverse practices and strategies employed in working capital management across different sized companies. The qualitative analysis provides insights into specific decision-making processes, contextual factors and challenges influencing working capital management and its components.
The findings of this study reveal notable variations in working capital management practices in Croatia and Finland across different sized companies. Small companies, constrained by limited resources and financial constraints, often adopt flexible and informal policies with a high orientation on customer and supplier communication and relationships. Medium and large companies on the other hand tend to opt for more formalized and structured working capital management strategies while leveraging their larger resource base and better bargaining power. Findings also provide an insight into the cultural differences emphasizing high degree of collectivism and personal relationships in Croatia, while Finnish companies opted for more objective and individualistic approaches.
This research contributes to the existing knowledge on working capital management by providing a nuanced understanding of variations across size differences in Croatia and Finland. The findings have practical implications for managers, offering valuable insights into the factors influencing working capital management decisions. The study emphasizes the importance of tailoring working capital management strategies to the specific needs and challenges posed by different company sizes and different cultural contexts.}},
author = {{Kristijan, Luka and Björkqvist, Max-Erik Viking}},
language = {{eng}},
note = {{Student Paper}},
title = {{Variations in working capital management in Croatia and Finland}},
year = {{2023}},
}